80% of security sensitive telecom equipment must be sourced locally by 2020: DoT

NEW DELHI: An expert group constituted by the telecoms department (DoT) has listed out 56 'security sensitive' telecom products, including SIM cards, modems, set-top boxes, routers and leased line equipment amongst others, and recommended that mobile operators be mandated to source 80% of their requirements for such equipment from Indian companies by 2020.

The panel has suggested this reservation for indigenously manufactured security sensitive products be extended to tenders of all government ministries (except defence), PSUs, government-controlled institutions and PPP-funded projects.

This is part of the government's larger policy to shore up electronic manufacturing capabilities in the country. The DoT has already approved Trai's recommendations that telcos source 80% of their network equipment and from domestic manufacturers by 2020.

But this also includes network and other hardware produced by the manufacturing units of foreign vendors located in India.

The Department of Information Technology has also notified a proposal that mandates that 30% value terms for all government procurement should be 'Made in India' or Indian electronic products.

The expert panel has called for preference for domestically manufactured products in a phased manned manner, beginning with 30% in 2013, and increasing it annually every year to 80% by 2020.

The commerce ministry had warned that such a step would violate multilateral agreements and international commitments made by the country.

"To suggest that domestically manufacturing 35% or even 80% of the telecoms equipment, security concerns like protection from malwares, denial of service software can be achieved, is an argument that may be difficult to sustain. Clearly, the purpose of Trai's recommendations stands out as promoting domestic manufacture and not security," the commerce ministry had warned in a March 12 communication to telecoms secretary R Chandrasekhar.